Greencore Group (GNC) H1 2025 earnings summary

Executive summary

• Revenue grew 6.5% year-on-year to GBP 922 million in H1 2025, driven by new business wins, volume growth, and pricing actions.

• Adjusted Operating Profit rose 59.7% to GBP 45.2 million, reflecting operational excellence and disciplined cost management.

• Adjusted EPS increased by 6.1p, up 117.9% year-on-year, with free cash inflow of GBP 37.8 million and free cash flow conversion at 78.6%.

• Leverage reduced to 0.8x Adjusted EBITDA, with net debt (excluding leases) down by GBP 61.8 million to GBP 136.2 million.

• Upgraded FY 2025 adjusted operating profit guidance to GBP 114 million-GBP 117 million, exceeding pre-pandemic levels.

Financial highlights

• Revenue growth of 6.5% year-on-year, with new business wins (2.9%), underlying volume growth (1%-2.5%), and pricing/inflation (2.6%) as key drivers.

• Adjusted EBITDA up 30.8% to GBP 73.1 million; Adjusted Operating Margin increased 160bps to 4.9%.

• Adjusted Profit Before Tax more than doubled to GBP 34.8 million; Basic EPS rose 80% to 4.5p.

• Free cash flow conversion at 78.6%, supported by working capital inflows.

• ROIC at 13.1%, up 290bps year-on-year, progressing toward 15%+ target.

Outlook and guidance

• Upgraded FY 2025 adjusted operating profit guidance to GBP 114 million-GBP 117 million.

• Second half expected to be seasonally important, with new business wins onboarding and some headwinds from protein, raw material, and labour inflation.

• Confident in maintaining 3%-5% revenue growth target and progressing toward 15%+ ROIC medium-term.

• UK pension scheme expected to be fully funded by September 2025, reducing annual contributions by GBP 9.8 million.

• Combined group (post-Bakkavor) expected to exceed WACC and be EPS accretive in the first full year post-completion.